Liverpool city region has struck a new deal announced in the Chancellor’s Budget for devolution of extra powers to local leaders.

Key additional powers include being one of the pilot areas to keep all business rates raised in the region, new traffic powers for the region’s elected Mayor and working with the Government to improve air quality.

City leaders will also work with the Government on devolving extra powers on health and has agreed to “undertake a fundamental review

of the way that children’s services are delivered”.

The official document published today outlines a series of themes although details remain vague – but the move has been welcomed by Mayor of Liverpool Joe Anderson, who chairs the Liverpool city region combined authority, as well as by Communities Secretary Greg Clark.

Currently all business rates are collected by councils and handed to the Treasury, which then redistributes the money – when the Chancellor’s plan to change this system were first revealed last autumn local council leaders feared Liverpool city region would lose out significantly.

They said that without a fair system areas with many company HQs such as Westminster in London which receive large amounts of business rates would benefit while other areas will fall further behind.

Mayor of Liverpool Joe Anderson shares a quiet joke with Minister of State for Universities, Science and Cities, Greg Clark

Mayor Anderson said today that devolution is “a continuous process and follows on from last November’s deal” and added: “I have always said that deals have to work in our collective regional interest so I am pleased there is the potential for additional new powers and responsibilities that will be negotiated to help us take our City Region forward by growing our economy and protecting and delivering better services.”

He said city region leaders had been in talks with the Chancellors’ officials “for some time, making the case that decisions made locally usually work best”.

He said: “So I’m particularly pleased we will be helping pilot the proposal for keeping 100% of business rates.

“By playing a constructive role in this review, we will help ensure the needs of other local authorities with similar social and economic challenges to our own are ironed out and the design of the final policy is fair and equitable.”

The City Region will take on responsibility for the Apprenticeship Grant for Employers and the deal also includes further powers on housing and apprenticeships, and an agreement that the Government “will work with Liverpool City Region and Merseyside and Cheshire Police and Crime Commissioners to develop and strengthen the local role in commissioning joined up local criminal justice services”.

Mayor Anderson added: “A series of traffic powers similar to those held by the Mayor of London would also be practical, common sense measures to help address issues arising from road congestion.”

Greg Clark, secretary of state for communities and local government, said: “All this will leave the Liverpool City Region well placed to compete on both the national and international stages.”